Exploring the Nexus between Asset Quality Deterioration and Stock Price Behavior: Evidence from Indian Psbs

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Autor principal: Srivastava, Abhinna
Formato: Recurso digital
Publicado: Zenodo 2025
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author Srivastava, Abhinna
author_facet Srivastava, Abhinna
contents <p>               The stock market serves as a key indicator of a country's economic health, reflecting the operational efficiency of various sectors. In the Indian context, rising Non-Performing Assets (NPAs) in the banking sector have emerged as a critical concern, influencing stock performance and broader economic stability. This study investigates the impact of NPAs on the share prices of public sector banks over a ten-year period (2009–2018). Five leading public sector banks were selected for analysis. Annual NPA figures and average stock prices were subjected to regression analysis to explore the relationship between these variables. The findings reveal that NPAs have a statistically significant influence on stock prices in four out of the five banks examined. These results underline the importance of effective NPA management for maintaining investor confidence and stock market stability.</p>
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spellingShingle Exploring the Nexus between Asset Quality Deterioration and Stock Price Behavior: Evidence from Indian Psbs
Srivastava, Abhinna
<p>               The stock market serves as a key indicator of a country's economic health, reflecting the operational efficiency of various sectors. In the Indian context, rising Non-Performing Assets (NPAs) in the banking sector have emerged as a critical concern, influencing stock performance and broader economic stability. This study investigates the impact of NPAs on the share prices of public sector banks over a ten-year period (2009–2018). Five leading public sector banks were selected for analysis. Annual NPA figures and average stock prices were subjected to regression analysis to explore the relationship between these variables. The findings reveal that NPAs have a statistically significant influence on stock prices in four out of the five banks examined. These results underline the importance of effective NPA management for maintaining investor confidence and stock market stability.</p>
title Exploring the Nexus between Asset Quality Deterioration and Stock Price Behavior: Evidence from Indian Psbs
url https://doi.org/10.5281/zenodo.15728875